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Hi Taylor
- My dad passed a few years ago and my husband and I just moved
my mom into an assisted living facility. We're all dealing with the
emotional part of it pretty well, but I'm starting to stress about
the finances. Not just paying for mom over these next few years, but
what happens with her accounts after she passes. Anything I can do
to start prepping?
Hi Rachel - This is a really hard question for people to ask,
but it's so important. None of us likes talking about death, but we
owe it to our parents—and our children—to have these conversations
early and often so there's no administrative nightmare attached to
a loved one's passing. |
1. Have
the conversation. Try to talk to your mom about this. She
might be resistant, but she might be more open to the talk than
you expect. This will be really helpful when it comes to getting
all the different accounts and legal items in order. You'll want
to know what lawyers have worked on what, what kind of outstanding
debts might hide in different places, and where all the liens
and pink slips and deeds are, etc. If your mom has her faculties
and wants to help, this can be a really cathartic thing to work
on together. If she's not interested in the topic, you need to
start doing some detective work on your own to see what's out
there.
2. Take some responsibility. As gently as possible, see what
financial matters you can take control of. Even if it's just paying
utilities or depositing social security checks, becoming part
of the process will make it an easier transfer when it all lands
on your plate. If your mom has investment accounts, see if you
can get in touch with the broker and have your name added to the
account now. This is a good way to start taking control without
making your mom feel like she's being shouldered out.
3. Don't merge accounts. Even if your mom is happy to hand
you the reigns on every little thing, you still need to keep your
accounts separate for a lot of reasons. Tax issues will get stickier,
and you might end up spending a lot more of your own money than
you expected to once the lines get blurred. I apologize if accounting
isn't your thing, but you'll have to play the role of bookkeeper
for a while as these things get sorted out.
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| Ask for help
as much as you can. CFPs like myself are here for just this type of
thing, so if you know someone who does this type of work or want to
go hire a professional, that can make your life a lot easier. Best
of luck with everything, Rachel! |
| Legal Disclaimer:
Information presented is for educational purposes only and is not
an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.
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